General Insurance Newsletter Friday 7th June 2024

Insurance News

An AM Best special report into how risk-sharing partnerships between specialty commercial-focused fronting insurers and their reinsurers are evolving revealed that “the market is ripe with opportunities for companies offering hybrid fronting arrangements to demonstrate their value and gain greater acceptance.” (Mia Wallace, 06/6/2024, Insurance Business UK, 'Bermuda Brokers on the rapid evolution of hybrid fronting models')

Global credit rating agency AM Best has affirmed the credit ratings of Société Tunisienne de Réassurance (Tunis Re), which had a Financial Strength Rating (FSR) of B and a Long-Term Issuer Credit Rating (Long-Term ICR) of “bb” – but with a negative outlook. AM Best came to the conclusion that Tunis Re’s balance sheet strength was strong and that its operating performance was adequate, its business profile was limited, and its enterprise risk management (ERM) was marginal. (Abigail Adriatico, 06/6/2024, Insurance Business UK, 'AM Best affirms Tunis Re ratings – but with a negative outlook')

The Chartered Property Casualty Underwriters Society (CPCU) – Bermuda chapter has increased its annual education award fund to $3,000, from the usual $1,500. According to reports, Ariel Re sponsored the additional $1,500, enabling CPCU–Bermuda to accommodate one more scholar this year. This annual scholarship helps students pay for their CPCU exams. On top of the examination fee assistance, the CPSU scholarship also provides future casualty underwriters exam process support and guidance, as well as free access to Bermuda CPCU Society networking and education events. (Noel Sales Barcelona, 06/6/2024, Insurance Business UK, 'Reinsurer's backing allows organization to double exam fund')

Bringing together two legacy businesses with their own distinctive cultures, ways of working, client propositions and broker relationships is always an intricate undertaking. So, what happens when you add a third legacy business to the mix? That has been the task at hand for Ann Owen (pictured) and the team she leads as managing director of Aviva Private Clients over the last three years. Having spent her whole career in the high-net-worth insurance market, Owen joined Aviva as part of the 30-strong team that came across following its acquisition of AXA XL’s private clients business in 2021. (Mia Wallace, 06/6/2024, Insurance Business UK, 'Aviva MD on bringing together legacy businesses')

DA Strategy has announced that Crux Risk Services (Crux), a new managing general agent (MGA) specialising in terrorism underwriting, has been approved by Lloyd’s as a coverholder. Crux launches with an initial line size of $100 million, led by Chaucer, and brokered by BMS. DA Strategy provided Crux with Appointed Representative licensing, enabling the MGA to target alternative distribution in the UK and US, with plans for international expansion. Crux operates on Azur Technology’s award-winning platform, which allows brokers to quote, bind, and manage policies in real-time. (Jonalyn Cueto, 06/6/2024, Insurance Business UK, 'DA Strategy launches new terrorism underwriting authority')

London-headquartered global insurance marketplace Lloyd’s is opening an office in Miami in September. The move is aimed at bolstering the marketplace’s Latin America and Caribbean business while continuing to support growth in the Americas. Lloyd’s noted that the Latin America and Caribbean segment contributed US$2.7 billion in gross written premium (GWP) in 2023, representing 4.6% of the Lloyd’s GWP pie. (Terry Gangcuangco, 06/6/2024, Insurance Business UK, 'Lloyd’s to open new overseas office')

The global market for commercial property and casualty (P&C) insurance retail broking was valued at approximately $76.6 billion in revenue in 2023, reflecting a 13.1% increase from 2022 without adjusting for inflation, and 6.2% accounting for inflation, according to research firm Insuramore. The top five groups in this sector by revenue were MarshMcLennan, Aon, Gallagher, WTW, and Acrisure, collectively representing 37% of the global market. The top 15 broking groups accounted for 56.8% of the market, while the top 300 groups generated around 88.1% of the global revenues, amounting to $67.5 billion. (Kenneth Araullo, 06/6/2024, Insurance Business UK, 'How did the global commercial P&C insurance market evolve in 2023?')

HCI Group has announced the completion of its catastrophe reinsurance programs for the 2024-2025 treaty year, running from June 1, 2024, through May 31, 2025. HCI secured two reinsurance towers for its insurance subsidiaries, Homeowners Choice and TypTap, similar to the prior year. Reinsurance Tower 1 covers all Homeowners Choice policies issued in Florida. (Kenneth Araullo, 05/6/2024, Insurance Business UK, 'HCI announces completion of catastrophe reinsurance programs for 2024-25')

Juniper Re, reinsurance broking arm and indirect subsidiary of The Baldwin Group, has announced a strategic collaboration with catastrophe risk assessment firm Reask to provide Juniper Re clients with pre- and post-landfall hurricane wind speeds and precipitation forecast data. Hurricanes present significant challenges in obtaining accurate wind speeds due to limited observations and traditional measurement failures at high wind speeds. Despite technological advancements, Juniper Re noted that translating hurricane paths and probabilities into actionable risk metrics for pre-landfall forecasts remains difficult. (Kenneth Araullo, 05/6/2024, Insurance Business UK, 'Juniper Re collaborates with Reask for hurricane risk information solutions')

In a recent interview with Insurance Business, Ed Halsey (pictured), VP of marketing at Genasys, shared his insights into the need for insurtech businesses to build solid foundations and not fall into the trap that is ‘growth at all costs’. He highlighted that there has “undoubtedly” been far too great an emphasis on growth in the insurtech space, with some players forgetting that, “if you build an exceptional product or service, growth ultimately takes care of itself”. (Mia Wallace, 05/6/2024, Insurance Business UK, 'Why insurtechs must avoid the trap that is 'growth at all costs')

According to Marsh’s Q1 2024 cyber insurance report, the UK cyber insurance market has become increasingly “buyer-friendly”, with ample capacity and intense competition among insurers leading to rate decreases. During the first quarter of 2024, organisations strengthened their cyber risk management with effective, data-driven controls. This led to decreased rates, improved terms and conditions, and an increase in underwritten business by insurers. (Kenneth Araullo, 05/6/2024, Insurance Business UK, 'UK cyber insurance market heats up')

Insurtech company Bondaval is establishing a reinsurance vehicle to support future growth, marking a significant expansion from its role as a managing general agent (MGA). The creation of Bondaval Re will enable the company to collaborate directly with reinsurers and insurers, including those within its existing global reinsurance treaty, thereby broadening potential business opportunities. As per a report from AM Best, clients will continue to engage directly with insurance partners. (Kenneth Araullo, 04/6/2024, Insurance Business UK, 'Bondaval launches reinsurance vehicle for future growth')

A Financial Times report has pointed to a decades-old Munich Re paper that cited the need to keep an eye out on climate change back in the 1970s. It was reported that the reinsurance giant’s paper highlighted the importance of studying global warming, polar ice melt, and other environmental changes, given that their potential impact on long-term risk trends had scarcely been examined. (Terry Gangcuangco, 04/6/2024, Insurance Business UK, 'Has the insurance industry failed to heed the climate change warning?')

Last Sunday it was hot. I was hot. I could feel the sweat drops going down my face... one after the other. The streets of Bristol were bustling with energy as runners from all walks of life gathered to participate in the Great Bristol Run, all with a common goal in mind: to have fun and support what each believed in - being a charity, helping a friend or maybe just keeping healthy. Despite the scorching sun beating down, the enthusiasm and determination of the participants shone through as they embarked on a challenging 10k run or half marathon. (ARAG, 03/6/2024, youTalk Insurance, 'Running for Justice')

It’s a never-ending war of attrition. As fast as companies find ways to protect themselves from cyber attacks, malicious actors find new ways round the defences. So, what can you do to help protect your business from threat? Around a third of UK companies know they have been attacked or been breached in the 12 months prior to the end January 2023, according to government figures. (NIG, 03/6/2024, youTalk Insurance, 'How to become cyber resilient')

Mergers & Acquisitions

RiverStone International has announced the completion of its deal for Electric Insurance Company (EIC) and its two subsidiaries, Elm Insurance Company and Electric Insurance Agency LLC, saying that the merger will further expand the reinsurance legacy solutions provider’s presence in North America. (Noel Sales Barcelona, 06/6/2024, Insurance Business UK, 'RiverStone completes insurer's takeover')

Seventeen Group has announced the completion of two acquisitions this month. The deals further expand the group’s regional operations and sector capabilities. The first acquisition involves Wisemans Insurance Services Limited (Wisemans Insurance Services), a general broker located in Ashford, Surrey. The firm employs nine staff members and handles total premiums amounting to £3.5 million. (Roxanne Libatique, 06/6/2024, Insurance Business UK, 'Seventeen Group expands regional presence with double swoop')

Jensten has completed the acquisition of Melville Burbage and Henry Seymour & Co following final regulatory approval. The acquisitions will add 37 specialist professionals and three offices to Jensten, contributing over £20 million in gross written premiums (GWP). Melville Burbage is known for providing commercial broking solutions and serves over 5,000 businesses and individuals. The company operates in various sectors, including construction, non-profit, and professional services, and brings expertise in the engineering and printing sectors, which are new areas for Jensten. (Kenneth Araullo, 03/6/2024, Insurance Business UK, 'Jensten finalises two acquisitions')

Markerstudy Group has announced that the merger between Markerstudy and Atlanta, the personal lines broking business of The Ardonagh Group, was approved by the FCA (Friday 31 May 2024), following the Competition and Markets Authority’s clearance on 26 March 2024, six months after the proposed merger was announced in September 2023. (Markerstudy Group, 03/6/2024, youTalk Insurance, 'Markerstudy and Atlanta merger approved')

Movers

Everest Reinsurance has announced the appointment of Mayur Doshi (pictured) as its new head of North America treaty casualty. Speaking on the appointment, Everest Reinsurance head of North America treaty reinsurance Jiten Voralia spoke of how the firm will benefit from Doshi’s experience. (Abigail Adriatico, 06/6/2024, Insurance Business UK, 'Everest Reinsurance welcomes new head of North America treaty casualty')

Sompo has announced the appointment of Thomas Leone (pictured) as its new chief investment officer, taking over the role vacated by Mark Silverstein, who has retired after more than 18 years with the firm. Sompo chief financial officer Nicolas Burnet expressed his excitement at welcoming Leone to the company. (Abigail Adriatico, 06/6/2024, Insurance Business UK, 'Sompo welcomes new chief investment officer')

Flood Re has today announced that its chief executive officer Andy Bord (pictured) will step down from his leadership role at its AGM in July 2024. In a Press release, the organisation hailed Bord’s “seven transformative years” as the head of the joint initiative between the government and the insurance industry to make home insurance affordable and available for households at risk of flooding. It was highlighted that under Bord’s leadership, Flood Re enabled over 550,000 households to access affordable home insurance while creating its Build Back Better (BBB) initiative to boost the resilience of flood-affected homes. (Mia Wallace, 06/6/2024, Insurance Business UK, 'Flood Re CEO Andy Bord to stand down')

Polo Insurance Managers has announced the appointment of Mel Carvill (pictured) as chairman. According to a news release, Carvill brings extensive experience in the financial services industry to his new role. He spent over 20 years at Generali Group, where he held positions including head of risk management, head of corporate finance and M&A, head of strategic planning, and head of Western Europe, Americas, and the Middle East. (Jonalyn Cueto, 06/6/2024, Insurance Business UK, 'Mel Carvill appointed chairman of Polo Insurance Managers')

The Texel Group, a specialist credit and political risk insurance broker, has announced the addition of two new brokers to its London office. Ivan Jesensky (pictured) and Michaela du Toit (pictured) bring to the company significant expertise in digitisation and structured finance, respectively. Jesensky has joined as Texel’s first digitisation broker. Reporting to Simon Bessant, head of insurance and a director at Texel, Jesensky will focus on building out the company’s use of technology and software, integrating innovative solutions within the firm’s operations. His role involves understanding the digital landscape’s impact on clients and ensuring Texel remains current with digital transformation trends. (Jonalyn Cueto, 06/6/2024, Insurance Business UK, 'The Texel Group expands London office with two key hires')

CNA Financial Corporation executive vice president and global head of underwriting Doug Worman (pictured) will step into the roles of president and chief executive at the start of next year. The appointment will see current chairman and CEO Dino E. Robusto transition to the executive chairman position. In his new capacity beginning 2025, Robusto will lead the CNA board of directors while acting as a strategic advisor to Worman, supporting the company’s objectives. (Terry Gangcuangco, 06/6/2024, Insurance Business UK, 'CNA Financial Corporation picks next CEO')

Fairfax Financial Holdings Limited has announced the appointment of Gobinath Athappan as chairman and chief executive officer of Fairfax Asia. Athappan will also be appointed chairman of Singapore Re, pending regulatory approval. Athappan has been with Fairfax and Fairfax Asia for 23 years. During his tenure, he has served as the chief executive officer of Fairfax’s Falcon Insurance in Hong Kong and Pacific Insurance in Malaysia. Since 2015, he has held the position of vice-chairman of Fairfax Asia. (Kenneth Araullo, 05/6/2024, Insurance Business UK, 'Fairfax appoints new Asia CEO, chairman for Singapore Re')

Global reinsurance firm MS Reinsurance has announced the appointment of Miguel Marin (pictured above) as its new head of data, with his hiring effective immediately. Marin heads into the new role from Swiss Re, bringing with him decades of industry expertise. He served as head of business intelligence, data quality, and operations at the reinsurance giant, a role which saw him managing its data landscape transformation. In total, he honed his craft at the Swiss reinsurer for more than 20 years. (Kenneth Araullo, 05/6/2024, Insurance Business UK, 'MS Reinsurance names new head of data')

It’s all change at the top for industrial insurer HDI Global in the UK & Ireland. The company has announced a new CEO for the region, in the form of Stephanie Ogden (pictured above). She moves into the hotseat on September 1, as Richard Taylor (pictured below) has taken the decision to retire at the end of the year before moving into a consultancy role. (Paul Lucas, 04/6/2024, Insurance Business UK, 'HDI Global names new CEO for UK & Ireland')